Friday 4th July 2003
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The rights issue will raise $210.8 million capital for the company.
The offer documents and letters confirming the entitlements of shareholders are expected to be dispatched on July 15.
The rights issue will be fully underwritten by Guinness Peat Group plc (GPG) with a broad panel of substantial sub-underwriters. GPG may retain not more than 15.6 million shares allotted under the underwriting arrangements.
This would result in GPG moving to a shareholding in Tower of not more than 13.75% as a result of shares allotted under the underwriting arrangement.
The underwriting fee is 2.5% of the full issue ($5.3m). A management fee of 0.5% ($1.1m) will be payable. The organising broker will be JB Were.
The board had available to it two alternative proposals to underwrite the rights issue. The board is of the opinion that the GPG underwriting proposal represented the best option for the company.
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